Cost of Setting Up a Company in Dubai: What You Need to Know Before You Invest

Setting up a business in the UAE is an exciting opportunity — but understanding the costs involved is crucial before taking the leap.

Company Setup in Dubai is a strategic decision that involves various financial elements, from licensing to visa fees. Knowing what you’ll be paying for can help you prepare a realistic budget and avoid surprises.

2. Why Dubai is a Prime Destination for Business

Dubai offers world-class infrastructure, tax advantages, and a highly connected global market. It's a business-friendly environment with streamlined processes, making it ideal for entrepreneurs, startups, and foreign investors.

3. Company Setup in Dubai: Cost Overview

The cost of company formation in Dubai can range between AED 12,000 to AED 50,000 or more, depending on your business type, legal structure, and location (Free Zone or Mainland).

4. Free Zone vs Mainland Company Costs

• Free Zone Companies: Cost-effective, no need for a local sponsor, suitable for 100% foreign ownership. Setup costs start from AED 12,000–AED 25,000.

• Mainland Companies: Require a local sponsor or partner, but offer access to the UAE local market. Costs range from AED 20,000–AED 50,000+, depending on business activity.

5. Business License Costs

Licensing fees are essential and vary based on your activity:

• Commercial License: AED 10,000 – AED 15,000

• Professional License: AED 7,000 – AED 12,000

• Industrial License: AED 15,000 – AED 25,000

These costs may vary slightly depending on the jurisdiction.

6. Office Space and Virtual Office Expenses

Office requirements differ by jurisdiction.

• Free Zones offer flexi-desks or co-working spaces starting from AED 5,000 annually.

• Mainland setups often require physical office space, which can cost between AED 15,000 and AED 30,000 per year.

7. Visa and Immigration Costs

You’ll need to factor in visa costs for owners, employees, and dependents:

• Investor/Partner Visa: AED 3,500 – AED 6,000

• Employee Visa: AED 4,000 – AED 7,000 per person

• Dependent Visa: AED 2,000 – AED 4,000

8. Sponsorship and Local Partner Fees

For mainland companies, a local sponsor or UAE national partner is required (unless it's a 100% foreign-owned license in permitted sectors). Sponsorship fees can range between AED 5,000 to AED 25,000 annually, depending on agreements.

9. Additional Government and Legal Fees

• Trade name reservation: AED 600 – AED 1,000

• Initial approval: AED 120 – AED 500

• Memorandum of Association (MOA): AED 1,000 – AED 2,000

• Notarization and legal translation may also apply

10. Hidden or Unexpected Costs to Watch For

• Medical test and Emirates ID (approx. AED 1,000 per person)

• Corporate bank account opening fees

• Insurance (health and worker’s compensation)

• VAT registration and accounting services

11. Tips to Reduce Setup Costs

• Choose a low-cost Free Zone like IFZA, SHAMS, or SPC Free Zone

• Opt for shared office or flexi-desk solutions

• Bundle services with business consultants to get discounted rates

• Start with fewer visas if possible and scale later

12. Is It Worth the Investment?

Absolutely. While setup costs may seem high, the business-friendly tax regime (0% corporate tax in many cases), strong legal framework, and global connectivity make Dubai a profitable base for long-term growth.

13. Final Thoughts

Understanding the cost of setting up a company in Dubai is vital for strategic financial planning. With the right knowledge and guidance, you can optimize your investment and tap into one of the world’s most dynamic business markets.